Credit Losses Based on Accounts Receivable Hunter, Inc., analyzed its accounts receivable balances at December 31, and arrived at the aged balances listed below, along with the percentage that is estimated to be uncollectible: Probability of Age Group 0-30 days past due 31-60 days past due Balance Noncollection $92,000 1% 22,000 2% 61-120 days past due 121-180 days past due Over 180 days past due 13,000 5% 8,000 10% 6,000 $141,000 25% The company handles credit losses using the allowance method. The credit balance of the Allowance for Doubtful Accounts is $720 on December 31, before any adjustments. a. Prepare the adjusting entry for estimated credit losses on December 31. b. Prepare the journal entry to write off the Rose Company's account on April 10 of the following year in the amount of $625 a. General Journal Description Debit Credit $ $ Date Dec.31 To record allowance for credit losses. b. Date April 10 To write off Rose Company's account. General Journal Description Debit Credit $ $